SALIENT POINTS OF THE SSS P.E.S.O. FUND

Items in blue are MY personal remarks and comments.

MEMBERSHIP

• All employees, self-employed (SE), voluntary members (VM), and OFWs who have not reached 55 years old and have not filed any final claim under the regular SSS program may enroll in the SSS PESO Fund. 
• For SE, VM and OFW members, they must be paying at the Maximum Salary Credit (MSC) for at least six consecutive months during the last 12 months immediately prior to the month of enrollment. 
• Membership in the SSS PESO Fund begins from the first contribution.
• Interested and qualified SSS members can enroll in the program through over-the-counter in any SSS branch. Online enrollment to the SSS PESO Fund will be announced soon.

CONTRIBUTIONS

• Each SSS PESO Fund member is allowed a maximum contribution of P100,000.00 per annum and minimum of P1,000.00 per contribution. Any amount below the minimum shall not earn interest and shall be subject to automatic refund. However, maximum and minimum amount of contributions may change upon determination of the Social Security Commission.
• Contributions may be made anytime, provided that for SE, VM and OFW members, such PF contribution has a corresponding SS contribution based on the maximum Monthly Salary Credit (MSC) on the month of contribution. 
• SSS PESO Fund contributions are allocated in three accounts: retirement/total disability (65%), medical (25%), and General Purpose (10%). 

GUARANTEED RATES AND INSURANCE

• SSS PESO Fund offers guaranteed rates for the various accounts. Guaranteed rate for retirement or total disability is based on the Five (5)-year T-bond, while medical and general purpose is based on the 364-day T-bill rates. 
• The monthly crediting of the guaranteed rate is based on the average of the past three (3) months. Crediting of actual earnings in excess of the guaranteed rate shall be made at the end of the year.

BENEFITS

• SSS PESO is a tax-free fund. 
• Members have the option to receive retirement or total disability benefit either through monthly pension, lump sum, or a combination of monthly pension and lump sum. 
• Effectivity of retirement/total disability is the same as the effectivity of retirement/total disability under the regular SSS Program. 
• Death benefit for beneficiaries of SSS PESO Fund members will be paid in lump sum. 
• In case the SSS PESO Fund member dies prior to the expiration of the pension period, his beneficiaries will be paid the remaining balance of his fund in lump sum.

FINANCIAL REPORT

• SSS PESO Fund members will receive a Statement of Account every month through electronic mail and may be viewed in their web account via My. SSS.

OPTION TO WITHDRAW                                            

• No withdrawals from the retirement account of the SSS PESO Fund are allowed. 
• Withdrawals on SSS PESO Fund are only allowed from the Medical (25%) and General Purpose (10%) accounts but corresponding penalty and service fees will be charged if the contributions are retained for less than 5 years. Penalty and service fees depend on the number of years the contributions are retained in the SSS PESO Fund as shown on the table below: 

FAQS

Can my SSS PESO Fund contribution vary every year? Yes. For example, you can place P100,000 in 2015 and P20,000 in 2016. This is a savings mechanism so it is up to you to save more so you can add on your SSS PESO fund.

Is there a difference between depositing my money in a savings account and putting it in the SSS PESO Fund? Yes.

A savings account earns minimal interest, usually about 1-4% annually. That much is pretty small potatoes for investment.  Also under PDIC, monies in a savings account are protected until half-a-million.  The Peso Fund carries a Sovereign Guaranty for the entire, by virtue of the SSS Law.

I am employed but I am not paying at the Maximum Salary Credit (MSC). Can I contribute P100,000 in my SSS PESO fund? Yes. The SSS PESO fund is a savings mechanism for those who have other sources of income so they can plan better for retirement.

UPDATE:  2015.07.07 

As a young person, you can start small, and make it bigger as you earn more.

If you are a voluntary member, then you are NOT allowed unless you are paying the maximum. or have paid the maximum 6 months prior to your enrollment.  Sorry, this is the biased portion i was referring to ---

Are my contributions in the SSS PESO fund taxed?

No. Both contributions and income from your SSS PESO Fund are tax free because your contributions had already been taxed from your salary.  Remember, we have the gross taxation scheme, a scheme guaranteed to bleed the blood out of its middle-class citizenry.

How are earnings credited?

Guaranteed earnings are credited monthly. Excess earnings, if any, are distributed at the end of the year.

Putting on my SSS member hat, I can see some inequities in this plan.  Can you spot them?  

There seems to be a bias against Voluntary and Self-Employed Members.

I will let you read, and let you know.  

Also, there are no instructions yet - on how to be a member. 

In the meantime, i will try and get the Pag-ibig proposal out here as well so we can evaluate things together.